Pension Fund | 3,262 employers in contribution arrears

JOHANNESBURG - Over 3,000 employers are not investing in pension funds of their employees.

The Financial Sector Conduct Authority says this is very worrying.

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It says businesses that are in arrears may face criminal prosecution.

The authority says the problem is mainly found among small enterprises.

Financial Sector Conduct Authority Takalani Lukhaimane said, "the non compliance is a combination especially for specific sectors. A lot of them are very small employers that are in the security industry, clothing industry where it is not necessarily a voluntary arrangement that they joined but they are compelled to join, either by sectorial determination or bargaining agreement."

"The compliance is already less because it's not a voluntary arrangement by the employer."

"These are also employers who are very susceptible to economic changes."